Gartner Earnings Outpace Estimates in Q4, Revenues Increase Y/Y

Gartner, Inc. IT has reported better-than-expected fourth-quarter 2024 results.See Zacks Earnings Calendar to stay ahead of market-making news.The company’s adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.1% year over year.The IT stock has gained 16.6% in a year, outperforming the 7.8% rally of the industry it belongs to.Gartner, Inc. Price, Consensus and EPS Surprise  Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. QuoteGartner’s Revenues by SegmentsRevenues in the Research segment were $1.3 billion, which grew 5.4% from the year-ago quarter on a reported basis and 5.7% on a foreign-currency-neutral basis. The gross contribution margin was 74.1%, which amounted to a gross contribution of $972 million in the fourth quarter of 2024.Conferences’ revenues were $251 million, which increased 17.2% year over year on a reported basis and 17.1% on a foreign-currency-neutral basis. The gross contribution margin was 47.6%, which logged a gross contribution of $120 million.Revenues in the Consulting segment amounted to $153 million, which increased 19.3% from the year-ago quarter on a reported basis and 19.2% on a foreign-currency-neutral basis. The gross contribution margin was 35.1% in the reported quarter, which amounted to a gross contribution of $54 million.Gartner’s Operating PerformanceAdjusted EBITDA of $417 million moved up 8% from the year-ago quarter on a reported basis and 8.9% on a foreign-currency-neutral basis.Balance Sheet & Cash Flow of ITGartner had $1.9 billion in cash and cash equivalents at the end of the quarter compared with $1.8 billion at the end of the preceding quarter. The long-term debt was $2.5 billion, flat with the third quarter of 2024.The operating cash flow totaled $335.4 million and the free cash flow utilized was $110.2 million in the reported quarter. Capital expenditure totaled $8.1 million.Gartner’s 2025 OutlookFor 2025, the company has raised the guidance for total revenues and expects it to be at least $6.55 billion compared with the preceding quarter’s view of $6.23 billion. The guidance is lower than the Zacks Consensus Estimate of $6.73 billion.IT has lowered the guidance for adjusted earnings per share to at least $11.45 from the $11.75 provided in the preceding quarter. The guidance is lower than the Zacks Consensus Estimate for earnings of $13.21.The adjusted EBITDA guidance has been lowered to at least $1.51 billion from the $1.52 billion given in the previous quarter. The free cash flow guidance is reduced to at least $1.14 billion from the $1.35 billion provided in the preceding quarter.Gartner carries a Zacks Rank #4 (Sell) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Snapshot of PeersBroadridge Financial Solutions, Inc. BR reported impressive second-quarter fiscal 2025 results.BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.Automatic Data Processing, Inc. ADP posted impressive second-quarter fiscal 2025 results.ADP’s earnings per share of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5.1 billion surpassed the consensus estimate by 1.6% and grew 8.1% on a year-over-year basis.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report Gartner, Inc. (IT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks